commercial signal failure

Matterhorn Asset Management’s Lars Schall has released an excellent interview with GoldMoney’s Alasdair Macleod, discussing the latest take-down of the metals post QE4, the outlook for gold and silver, and cartel manipulation of the metals.
Macleod states that massive amounts of physical gold and silver have been flowing to Asia, and that the latest bank participation report indicates massive problems are brewing for the banksters in the COMEX silver market. With cartel shorts near a record at just under 300 million net ounces, yet with the silver price substantially lower than the 2011 high, Macleod believes thatwe are quite likely to have a failure on COMEX and in the silver market in particular.

Since early September, will all the huffing and puffing the cartel has directed towards silver, they’ve accomplished virtually nothing other than scaring the bejesus out of all but the most informed strong hand silver investors. All the cartel has been able to do is push silver under $34 for a few hours per raid per week. That’s pretty much unprecedented, yet sentiment remains so despondent that few seem to even notice that the cartel is actually already showing the weakness one would expect to see at the initial stage of a commercial signal failure.

The cartel has been attacking like mad for the better part of a whole month now, ripping out not only the kitchen sink but taking much of the rest of the plumbing out of the walls and hurling it at the paper markets. Yet even through one of the fastest additions of short interest we’ve seen throughout this entire bull market, the cartel has little to show for it’s effort.

I believe we have been witnessing the initial stage of an evolving commercial signal failure.

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